U.S. markets rebound in early trading as oil prices fluctuate on Iran conflict

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U.S. markets rebound on oil

Highlights

WTI crude fluctuates around $82 per barrel as Middle East conflict persists and U.S. gas prices reach a four-year high of $4.56 per gallon in May.
The Nasdaq Composite rises 0.52% and the S&P 500 gains 0.26% in early trading, despite last week's declines of 2.9% and 1.5% respectively.
Jersey Mike's targets a $1.09 billion IPO at $21–$25 per share under ticker JMKE, valuing the company near $8 billion with Blackstone maintaining majority control.

Early market moves and oil volatility

As reported by Cboe Global Markets, major U.S. stock indexes are mixed in early trading while oil prices swing after an Iranian diplomat says talks with the U.S. could be pursued in hopes of ending nine straight days of heightened conflict.

WTI crude moves up and down around $82 per barrel, highlighting persistent investor anxiety over the Middle East conflict and its effect on supply. At U.S. gas stations, prices top $4 a gallon, up from an average of $2.98 a gallon before the war with Iran began in March, according to AAA. AAA data also show prices reached a four-year high of $4.56 a gallon in May.

The main equity benchmarks are trying to recover after last week's selloff in large-cap stocks. The Nasdaq Composite rises 0.52% and the S&P 500 gains 0.26%, while the Dow Jones Industrial Average slips 0.20%.

Earnings watch and stock-specific movers

Semiconductor shares are among the session's stronger performers as investors buy after recent declines. Micron rises 4.7%, Western Digital gains 4.5%, Advanced Micro Devices adds 4.5%, Intel climbs more than 4%, and SK Hynix advances about 5%.

Last week's earnings-heavy trading leaves markets under pressure overall. Friday ends with the S&P 500 down 1% and off 1.5% for the week, while the Nasdaq falls 1.4% on the day and 2.9% on the week. The Dow performs slightly better, down 0.08% for the session and 0.09% for the week.

This week brings another busy reporting schedule, with General Motors due before Tuesday's opening bell and Alphabet and Tesla set to report on Wednesday. Investors are also watching final numbers from IBM after the stock fell following pre-released expectations last week, while Intel remains in focus ahead of Thursday.

Among individual movers, Domino's Pizza gains nearly 7% after revenue exceeds Wall Street expectations, even as per-share profit misses estimates and U.S. same-store sales edge up just 0.1%, the slowest pace in five quarters. AMC jumps more than 17% after reporting record revenue and saying the opening of The Odyssey drives strong weekend attendance across its theaters.

SpaceX trades about 1% higher in early activity as the company tries to recover ground lost since its initial public offering last month. Shares trade at just over $1.22 each, far below the stated IPO price of $135 a share.

Jersey Mike's is also drawing attention as the sandwich chain markets its initial public offering at $21 to $25 per share. Under ticker JMKE, the company and its shareholders plan to offer about 43.5 million shares, raising as much as $1.09 billion and implying a market capitalization of nearly $8 billion. Blackstone, which paid about $8 billion for a majority stake in Jersey Mike's last year, is set to retain control of roughly two-thirds of the company.

Our earlier article examined the sharp selloff and volatility in semiconductor and AI-linked stocks, and how heavy use of margin and leveraged ETFs can magnify moves when sentiment turns. We also noted that concentrated chip exposure and rising retail participation increase the risk that a sector downturn could spill over into wider market stress, especially around earnings and guidance.

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